7 Last-Minute IRPF Strategies to Slash Your 2025 Spanish Tax Bill

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That sinking feeling you get in mid-November? It’s not just the dark evenings. It’s the sound of the 2025 tax year slamming shut. You've worked hard all year as an expat or autónomo in Spain, and now you’re looking at your earnings and dreading the IRPF bill (Modelo 100) that will hit you next April. I know exactly how you feel. It’s far too easy to overpay by thousands, simply because you miss a few key deadlines that all fall on December 31st. But it doesn't have to be that way. You can take specific, legal actions right now to significantly reduce that final tax bill. In this post, I'm going to walk you through the 7 most powerful, high-impact strategies we use with our own clients - from the most under-used tax credit in Spain to the simple timing tricks that can save you a fortune.

1. The Startup Investment: A 50% Tax Credit (Not a Deduction)

This is, without a doubt, the most powerful and overlooked incentive in the Spanish tax system. We're not talking about a deduction from your income; we're talking about a direct 50% credit taken directly off your final tax bill. Under this rule (part of the "Startup Law"), you can invest up to €100,000 in a new or recent company and get €50,000 back. One of our clients, a software executive, used this last December. He invested €20,000 in a local tech startup and instantly reduced his final tax liability by €10,000. It's a game-changer. The rules are specific (the company must be new, you can't hold >40%), but the opportunity is massive. We always guide clients using the official Ley 14/2013, de 27 de septiembre (and its recent "Startup Law" modifications).

2. Maximize Your Pension (The Autónomo & Business Owner Hack)

Everyone knows about the €1,500 individual pension plan (plan de pensiones) deduction. It's fine, but it's not where the real savings are for entrepreneurs. If you are self-employed (autónomo), you can also contribute to a Simplified Employment Pension Plan (PPES). This lifts your total deductible limit to €5,750 (€1,500 + €4,250). If you own an SL, you can make employer contributions (contribuciones empresariales) for an additional €8,500. According to our experience, most SL owners just do the personal €1,500 and leave the €8,500+ on the table, paying corporate tax on it instead.

3. Accelerate Expenses & Delay Income (The Autónomo's Best Friend)

This is the most direct control you have. Your taxable profit is simple: Income minus Expenses. So, control the timing. • Accelerate Expenses: Need a new laptop, office furniture, or to pre-pay your 2026 software subscriptions? Buy them before December 31st. They become a 2025 expense, lowering your 2025 profit. • Delay Income: Have a big project invoice to send? If your contract allows, wait and send the factura on January 2nd, 2026. That income now legally falls into the next tax year, deferring the tax liability.

4. The Final Call: Energy Efficiency Deductions (Up to 60%)

This is urgent. The popular deductions for making your home more energy-efficient expire on December 31, 2025. This is your last chance. You can get a deduction of 20%, 40%, or even 60% on works that improve your home's energy rating. Here's the catch: You MUST have an official energy certificate from before the renovation and another one after. You can't just show receipts for new windows. According to our experience, this is the number one reason these deductions are rejected by the Hacienda. You can check the full technical details on the Agencia Tributaria (AEAT) website.

5. Harvest Your Losses (Urgent: 2021 Losses Expire This Year!)

Did you sell any stocks, funds, or crypto for a gain in 2025? It's time to "tax-loss harvest." This means selling other investments that are currently at a loss. You use the loss to cancel out the gain, wiping out the tax. Why is this urgent? In Spain, you can only carry forward capital losses for four years. Any significant losses you crystalized back in 2021 (a volatile year for many) will expire forever on December 31, 2025. You must use them or lose them.

6. The 80% Donation "Easy Win"

This is the simplest move on the list. The Spanish government gives you an 80% deduction on the first €250 you donate to a qualifying Spanish NGO (one covered by Ley 49/2002). Think about that: a €250 donation only costs you €50 out-of-pocket after the tax return. It's an incredibly efficient way to support a cause you care about and lower your tax bill.

7. The Beckham Law "Health Check"

I know, the Spanish tax system is a maze. Are you sure you're on the right tax regime? If you're on the Beckham Law (the special expat regime), you're paying a flat 24% tax, and almost none of these deductions apply to you. Your pension, donation, and energy credits are irrelevant. Your year-end strategy is different and far more urgent: • New Arrivals: Did you move here in 2025? You only have 6 months from your Social Security start date to apply. That window might be closing right now. Missing it is an irreversible, multi-thousand-euro mistake. • Veterans: Is your 6-year term ending? If it ends this year, you must plan your transition to the standard IRPF system, or you'll have a massive tax shock in 2026.

Don't Wait Until April

As you can see, your final IRPF tax bill for 2025 is not set in stone. It's a number you can actively and legally influence right now. Whether it's making a strategic investment, timing an invoice, or finally cashing in those 2021 losses, the key is to act before the December 31st deadline. I know this is complex. Feeling overwhelmed is normal. This is exactly why we built InnoTaxes. Our platform is designed to handle these exact scenarios for expats, entrepreneurs, and freelancers in Spain. Try the free InnoTaxes platform today and see how easy it can be.